September rents up 2.1% year-on-year

HomeLet has reported that tents in the UK rose by 2.1% in September compared to the same month a year ago.

The average monthly rent now stands at £987 a month.

When London is excluded the average rent in the UK is now £828, this is up by 3.9% on last year. Average rents in London were £1,646, down by 2.8% on last year, the fourth decrease in annual variance in subsequent months.

HomeLet’s September Rental Index reveals that rents rose in 10 of the 12 UK regions covered in the research.

The South West shows the largest yearly increase of 6.6% between September 2019 and September 2020.

Martin Totty, HomeLet’s chief executive, said: “Whilst it’s undoubtedly the case many landlords are being supportive of their tenants and agreeing temporary reductions or deferrals, it will be encouraging for them to see rents agreed on new tenancies, in almost all parts of the country, are continuing to hold up and generally edge forward.

“This is likely because tenant demand remains strong whilst supply may be a little more constrained if some landlords are selling into a stronger sales market, even if that could be a short term phenomenon. It also doesn`t help tenants much if, for them, the prospect of securing first time mortgage finance remains as elusive as ever.

“So, those landlords committed to the sector for the long term and having shown their willingness to confront the multiple headwinds of: taxation change; new regulatory requirements; and, in certain circumstances, longer notice periods to gain possession of their properties, may still be rewarded for their flexibility and their perseverance with reasonable returns on their investment risk.”

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